RISING capital values and strong competition are driving property investors to look beyond London and consider taking a stake in Yorkshire’s towns and cities.
Many investors are being won over by the charms of places like Huddersfield, according to property consultants JLL’s Where Next in the UK report.
From its shortlist of 37 locations, JLL ranked Milton Keynes first, followed by Reading and Luton. Yorkshire’s towns and cities were grouped close together, with Huddersfield placed 20th, followed by Bradford (23rd), Sheffield (24th), York (25th) and Wakefield (26th).
According to the report, Bradford, Sheffield and York have recorded positive capital value growth since the end of 2012; however their future economic performance is not expected to be as strong.
As a result, JLL said property investors may need to focus on the best locations within these cities, and in some places, good quality offices may be available at a discount.
Jeff Pearey, the head of JLL’s North East region, said: “Strong business clusters are a key determinant of future growth prospects.
“For instance, Warrington and Oxford which ranked highly in the report, have prominent business clusters which are contributing to a robust employment growth outlook.”
In Sheffield, JLL said it has seen significant investment by local government following the decline of manufacturing. This repositioning will help Sheffield to keep growing, the report concludes.